XRP has recently shown signs of recovery, climbing back above the important $2 threshold. Over the past 24 hours, the digital asset gained 2.35%, marking its first notable upward movement after several weeks of declining performance. This rebound comes at a crucial technical moment as XRP narrowly avoided a bearish pattern known as the "mini-death cross," which occurs when the 50-day Exponential Moving Average crosses below the 100-day EMA.
Currently trading around $2.15, XRP presents a mixed picture. On-chain data suggests weakening network activity, while derivatives markets reflect growing optimism among traders. This article examines key metrics, technical levels, and market sentiment to provide a clear overview of XRP's potential trajectory.
On-Chain Activity Shows Decline
Recent data indicates a noticeable drop in engagement across the Ripple network. Transaction volume has decreased significantly, falling from approximately 1.4 million to 657,000 within a 24-hour period. This reduction of more than half suggests lowered network utilization.
In addition, the number of active unique accounts declined from 19,018 to 8,039, indicating a potential decrease in user interest or participation. These on-chain metrics often serve as indicators of market momentum, and such declines may pose challenges for sustaining price gains.
Lower transaction volumes and reduced active accounts can reflect diminished speculative interest or network utility. If these trends continue, they could limit XRP's ability to maintain its current price levels or pursue further growth.
Derivatives Market Sentiment Turns Positive
In contrast to the on-chain data, derivatives markets are displaying increased bullish sentiment. Open Interest (OI), which represents the total number of outstanding derivative contracts, has risen steadily. Futures market OI increased by 2.15%, reaching $3.18 billion, while options OI surged by 108.93% to $242,000.
The funding rate, which indicates whether long or short positions are dominating, stood at 0.0091% over the past day. This positive rate suggests that traders are leaning toward long positions, expecting price increases.
The Open Interest Weighted Funding Rate, which offers a more nuanced view by accounting for contract sizes, also increased to 0.0078. This metric reinforces the notion that larger or institutional traders are positioning for upward price movement.
Such optimism in the derivatives market often precedes price rallies, as it reflects professional and institutional expectations. This creates an interesting divergence from the weakening on-chain fundamentals.
Key Technical Levels for XRP
XRP is currently testing a major resistance level near $2.10. A successful breakout above this point could signal further upward movement, while failure may lead to a retracement toward support levels.
Important support zones lie at $1.923, $1.850, and $1.759—areas where buying interest has historically emerged. The $1.95 level, in particular, is reinforced by the 200-day EMA and recently sparked a rebound.
On the higher side, the $2.24–$2.25 range represents the upper boundary of a descending channel that has constrained XRP's price action since early 2025. A breakout above this trendline could indicate a reversal and open the door for targets near $2.50 or even $2.70.
The Relative Strength Index (RSI) is currently near 50, suggesting that XRP is neither overbought nor oversold and has room to advance before reaching extreme conditions.
The avoidance of the mini-death cross and the hold above $2 are being interpreted as short-term bullish signals, though traders are advised to monitor volume and momentum for confirmation.
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Frequently Asked Questions
What does the "mini-death cross" mean for XRP?
The mini-death cross is a bearish technical pattern that occurs when the 50-day EMA crosses below the 100-day EMA. XRP recently avoided this pattern, which is being viewed positively by market participants.
Why are derivatives markets bullish while on-chain activity is declining?
Derivatives markets often reflect trader expectations and sentiment rather than current network usage. Rising open interest and positive funding rates suggest that traders are anticipating price increases despite reduced on-chain transactions.
What are the major resistance levels for XRP?
The immediate resistance is near $2.10. A break above that could test the $2.24–$2.25 range, which aligns with a descending trendline. Beyond that, $2.50 and $2.70 may come into play.
Where is support likely to be found if the price drops?
Key support levels include $1.95 (near the 200-day EMA), $1.85, and $1.76. These levels have historically attracted buying interest during pullbacks.
How does the RSI impact XRP's price outlook?
An RSI near 50 indicates neutral momentum. This means XRP is not overbought, which leaves room for potential upward movement if buying pressure increases.
Can XRP sustain its recovery above $2?
Sustainability will depend on a mix of factors, including market sentiment, trading volume, broader cryptocurrency trends, and any new fundamental developments related to Ripple or regulatory clarity.